How would you feel if your brokerage firm hides facts from you?
You’d feel betrayed. But if your brokerage firm has been doing this for decades, finding out the truth about them would be nearly impossible.
Selkirk Investments is one such brokerage firm, which has been ripping off its investors since indefinite time.
Only 8 cases have been filed against them. And no one knows how many times they have committed similar crimes.
This article aims to open your eyes and reveal the truth about a terrible organization which has been lying to its investors, the regulatory authorities and the public. From hiding the truth to giving wrong advice to its investors, this company has done it all.
What is Selkirk Investments Inc.?
Selkirk Investments is an old member of this industry. They don’t specify on their website as to when they were established and how they came into existence, but according to FINRA records, this company was registered with them in the year 1983.
It’s an investment brokerage firm, which deals in securities, bonds, common stocks and other investment tools. Their job is to advise their investors regarding their investments and inform them of the risks and benefits of their decisions. From the looks of their website, they might seem like a genuine and leading investment firm. But in reality, they are one of the most crooked and wicked companies this industry has seen.
They have committed crimes not once or twice but 8 times at least. These are only the cases which were registered against them. Who knows how many people they have defrauded in their 30+ years of existence?
Because if an organization can be found guilty in 8 cases of FINRA rule violations, one can assume that they have done similar crimes in multiple instances.
First Case (Breaking Rules 5310 and 2010)
During the first quarter of the year 2015 (January-March), Selkirk Investments didn’t perform proper diligence. This way, it became clear that they didn’t figure out the best inter-dealer market. And when they failed to do so, it showed that they didn’t have the best interests of their investors in their minds.
They failed in buying or selling in the best market. If they had, then the customer would’ve gotten the most favourable prices for their investments. They failed to perform proper diligence in six corporate bond transactions. Just within this period of 3 months, this company had broken two of the most vital FINRA rules, rule no. 5310 and 2010.
What is FINRA rule 5310 (also known as, Best Execution)?
According to rule no. 5310, a broker-dealer should follow proper care while executing a customer’s order so that the customer can get the most advantageous terms. The broker-dealer should perform reasonable diligence to determine the best market for the required security. They should also buy or sell in this market so the customer can get the best prices possible.
Second Case (Violating Rules 2121 and 2010)
The first case was just the tip of the iceberg, they did a similar mischievous act from October 2015 to March 2016. In 25 transactions, they sold corporate bonds at unfair prices and ensured that they made a profit on all of them. They did not consider market conditions while making these transactions.
In other words, they were ripping off their customers by selling those bonds at unfair prices. Such unethical behaviour is bound to get punished.
Third Case (Unethical Supervision)
Selkirk Investments has also been found lacking proper supervision. Their supervisory team didn’t perform proper compliance with the regulations and rules of FINRA. This means the firm didn’t even bother to follow the rules specified by the regulatory authority. Their supervisory documents and procedures were vague, ensuring that their crimes will get lost in the details.
They did not maintain proper documentation, which led to further violations of FINRA rules. They have designed the supervision of their company in such a way, that their practices were not compliant with the aforementioned FINRA rules (Rule no. 5130 and 2010).
This shows that they were knowingly violating those rules. They knew they were committing a crime, but they didn’t care.
Selkirk Investments ended up paying a total fine of $30,500 due to the violations of multiple FINRA regulations. But do you think it’s enough?
These people not only betrayed their customers on multiple occasions, but they also cheated the system, knowingly.
These investment bankers think they are above the system. The unfortunate fact is, they got away by paying a mere fine of $30k.
If you call a thief a thief, he will get mad. The same is the case with Selkirk Investments. Apart from the records of regulatory authorities, you wouldn’t find anything about the mischievous acts of this organization.
They say on their website, “The decision to invest is an act of faith.” But without transparency, how can you expect your investors to trust you. They have removed articles related to their fraudulent cases from the internet by paying people up so they can maintain a crystal-clear reputation. Everyone knows that no one would invest with a brokerage firm, which has a long history of giving wrong investment advice. Their reputation management team must be adept at paying people off. Otherwise, such a long list of fraudulent couldn’t just disappear from the internet.
The Harsh Truth of Investment Banking
Many people have questioned the ethics and morals of investment bankers. We are not saying that every one of them is a criminal. But companies like Selkirk Investments give a bad name to the industry. Not only have they committed crimes in multiple instances, but they have also hidden these facts from the internet.
They don’t maintain transparency with their investors and that alone is the biggest red flag a brokerage firm can have. These multiple cases are only an indication of how mischievous these people are. Seeing their experience and influence over the industry, one can only wonder how many times they have gotten away with such vicious crimes.
They hide the truth from the public. And that is a big crime in itself.